NEC electronic semiconductor sales in fiscal year 06 is expected to increase 10% strive to achieve profitability

[BP NEC] the Nikkei news agency reported President Nakajima Toshio NEC in the 2005 fiscal year (April 2005 to March 2006) the settlement conference, announced the 2006 fiscal year (April 2006 to March 2007) the performance prediction and the future aims to improve the performance of basic policy. 2006 fiscal year results, sales are expected to increase over the previous fiscal year, up to 705 billion, up to $9.1% in semiconductor sales over the previous fiscal year, an increase of 9.8%, up to $680 billion, operating profit and loss of 5 billion yen. The company said, "because the order is good, so the semiconductor sales can achieve 10% growth" (NEC Electronics President Nakajima Toshio). Operating profit and loss, although the first half of fiscal year is expected to be 5 billion yen deficit, but from the point of view of the entire fiscal year, is expected to achieve profitability. However, this fiscal year is expected to net profit and loss of 5 billion yen deficit. For the future implementation of semiconductor sales growth, the company mentioned for digital equipment AV SoC "EMMA", for the next generation of Nintendo Playstation DRAM hybrid SoC, and the general micro computer three kinds of products. In order to cope with the momentum of good orders, scheduled for fiscal year 2006, an increase of 20.5% over the previous year's investment in equipment, reaching about 100 billion yen. In addition to the Yamagata 300mm production capacity from the current 6000 to 11 thousand / month / month, will also step backward factory investment of about 40 billion yen. For the purpose of improving the performance of the basic principles, the company cited the following 3 aspects: (1) to expand the volume of orders and sales, (2) to promote the reduction of costs, (3) to improve the efficiency of development. Section (1), by strengthening the cooperation with semiconductor sales companies and sales system in China, the volume of orders and sales are expanding, and will continue to maintain this momentum in the future. Section (2), through the expansion of the production scale of the 300mm factory and other measures, and strive to achieve the premise of low cost. As for the 150mm ~ 200mm production line, will also strive to improve production through the next 3 years, the production capacity will increase by 40%. Section (3), through the adoption of new orders from the beginning of the product oriented SoC development of the general platform, and strive to improve efficiency. (reporter: Kimura Masahide)